The ongoing talks signaled a strong willingness from the side of the Egyptians to restore full ties with Iran, according to observers.

Tehran and Cairo have "great economic potential to reinforce bilateral relations," Egypt's Trade Minister Rashid Mohammed Rashid was quoted as saying by The Egyptian Gazette on Sunday.

Mehrabian held negotiations with his Egyptian counterpart regarding trade agreements, as reports meanwhile said that the two countries signed Saturday an agreement on forming a joint Egyptian- Iranian automobile factory. The factory is expected to initially produce over 5,000 cars a year.

The two sides also discussed the possibility of importing wheat from Iran, which according to Rashid, has become a strong exporter of wheat.

The issue of cooperation regarding nuclear energy was not discussed, Rashid told the press. He added, however, that Egypt is against imposing sanctions on Iran because of its uranium-enrichment programme.

Earlier, press reports had speculated about the full restoration of ties between Cairo and Tehran.

Iran cut all its diplomatic ties with Egypt in 1979, the year of the Iranian Revolution that had made the country an Islamic republic, after Egyptian President Anwar Sadat made peace with Israel and allowed normalization of relations.

Egypt still maintains ambassadorial ties with Israel through diplomatic and business relations.

Agencies

Güncelleme Tarihi: 02 Aralık 2007, 19:11